[{"left":"Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects\n\n","right":"[http://assignment.store/products.php?product=Bad-Boys%2C-Inc.-is-evaluating-its-cost-of-capital.-Under-consultation%2C-Bad-Boys%2C-Inc.-expects-](http://assignment.store/products.php?product=Bad-Boys%2C-Inc.-is-evaluating-its-cost-of-capital.-Under-consultation%2C-Bad-Boys%2C-Inc.-expects-)"},{"left":"Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects\n\n","right":"Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a $2.50 per share dividend at $25.00 a share. The common stock of Bad Boys, Inc. is currently selling for $20.00 a share. Bad Boys, Inc. expects to pay a dividend of $1.50 per share next year. An equity analyst foresees a growth in dividends at a rate of 5% per year . Bad Boys, Inc. marginal tax rate is 35%. If Bad Boys, Inc. raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is Bad Boys cost of capita?\n\nIf Bad Boys, Inc. raises capital using 30% debt, 5% preferred stock, and 65% common stock, what is Bad Boys cost of capital?"},{"left":"","right":""},{"left":"","right":""}]